To support a smooth transition, Ethereum is transitioning to proof of stake (PoS) with new protocol upgrades. Ether's price peaked at a new all-time high of $4,361 on 21 October, ahead of next week's Altair Beacon Chain upgrade, but then gradually dropped.
The pertinent question, however, is whether this more energy-efficient protocol will help Ethereum overtake Bitcoin in the long run.
According to crypto market observers, investors' attention has recently shifted from Bitcoin to Ethereum following the launch of the Bitcoin futures ETF in the United States. In an interview, Justin d'Anethan, head of exchange sales at Nasdaq-listed crypto company EQONEX, stated,
“With rumors of Ethereum ETFs possibly coming, many investors are getting exposure to ETH before any announcement…”
He expressed greater confidence in Ethereum's new protocol upgrade, saying,
“From a cyclicality perspective, it also stands to reason that with BTC breaking new highs, ETH would gain as well — and maybe at some point outperform.”
The price increase followed by a pullback in Ether was similar to Bitcoin's trading action earlier this week. In this regard, EQONEX's d'Anethan elaborated, "...we frequently observe BTC leading, ETH catching up, and then more exotic or speculative coins following on."
The rise of DeFi and the current NFT craze are also factors in Ethereum's rise. Ethereum 2.0 is expected to reduce the platform's power consumption by 99.9%.
It also intends to make the system more decentralized. Danny Ryan, who is in charge of coordinating the transition to Ethereum 2.0, recently tweeted,
I just upgraded for Altair!— dannyryan 🏺🚂 (@dannyryan) October 22, 2021
It took me 8 minutes. Why wait?
All bounties for vulnerabilities related to the Altair upgrade have been doubled, as previously reported. The developers are offering a generous prize of up to $100,000.
Konstantin Anissimov of CEX.IO stated a specific price target for Ethereum earlier this year. He told Bitcoinist that ETH/USD would reach $3,000 in the second quarter of this year.
According to him, the unprecedented increase will be caused by the euphoria surrounding Ethereum's PoS upgrade. According to Anissimov,
“ETH bulls are somewhat inspired to push the coin to a high of $2,500 in the short term, and over $3,000 by the end of the second quarter.”
Altair, the Beacon Chain's first mainnet upgrade, is scheduled for epoch number 74,240 on October 27. Despite the fact that Ethereum and Bitcoin have an extremely positive correlation efficiency, only time will tell if Ethereum can ever outperform Bitcoin.